Seven people have been killed and three attackers have been shot dead after they drove a van into pedestrians on London Bridge, before stabbing diners in nearby restaurants and pubs.

In what police have described as a terror incident, the three assailants - who were wearing fake suicide bomb jackets - drove their van into helpless passersby on the capital's landmark and then launched a frenzied knife attack on people in nearby Borough Market just after 10pm on Saturday.

Armed police stand over what is believed to be a suspect shot at the scene of a terror attack outside Borough Market in central London on June 3, 2017.

A team of elite SAS troops were deployed to the capital in response to the terror attack - the first time they have been used on British streets.

Speaking outside 10 Downing Street, the Prime Minister said the UK was facing a "new trend in the threat we face," adding that "terrorism breeds "terrorism."

In a strongly worded statement, Mrs May said: "Enough is enough. When it comes to taking on terrorism and extremism things needs to change.

"United, we will take on and defeat our enemies."

A total of 48 people were injured in the incident, some of them critically, and are being treated in six hospitals across the capital. One of the victims was a British Transport Police officer who was reportedly stabbed in the face. Eyewitnesses also reported seeing a pregnant woman lying prone on London Bridge.

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Metropolitan Police Commissioner Cressida Dick praised the "extraordinary bravery" of her officers and said: "The last thing we need is people over-reacting or taking out their frustrations on people in other communities or in their own communities."

The attack comes less than two weeks after 22 people were killed when terrorist Salman Abedi detonated a bomb in the foyer of Manchester Arena after an Ariana Grande concert. However, it is not believed the two attacks are directly linked.

Political parties have postponed their campaigns, while some have called for the General Election to be delayed.

Witnesses to last night's attack described seeing the assailant's shout - "This is for Allah" - before stabbing diners in restaurants and pubs along Borough Market with 'long knives.'

Injured people being removed from London Bridge

Staff and customers hid in a cellar at one restaurant while there were reports of drinkers hurling chairs and pint glasses at the attackers, the Daily Mirror has reported.

A picture posted online showed one of the suspects lying on the ground outside The Wheatsheaf pub with canisters strapped to a belt.

One eye witness told BBC News: "They were stabbing everyone. They were running up and going 'This is for Allah'.

"They ran up and stabbed this girl - I don't know how many times - 10 times, maybe 15 times.

"She was going, 'Help me, help me' and I couldn't do nothing.

"I threw something - there was a bike on the floor. I threw something at them like a bike or a chair."

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The attack comes just days after the national terror threat level was reduced from critical to sever, meaning an attack is 'highly likely.' The Prime Minister Theresa May chaired a meeting of the government's emergency COBRA committee this morning.

She also confirmed the General Election will still go ahead as planned on June 8.

Assistant Commissioner Mark Rowley said: "Since late yesterday evening (June 3), the Metropolitan Police Service has been responding to incidents in the London Bridge and Borough Market areas of south London. We are treating this as a terrorist incident and a full investigation is already underway, led by the Met's Counter Terrorism Command.

"The ongoing operation is led by the Met, working closely with British Transport Police, City of London Police, the London Ambulance Service and the London Fire Brigade.

"I'd like to repeat our request for the public to avoid the following areas: London Bridge and Borough Market. This is to allow emergency services to deal with this incident.

"The investigation is being led by the Counter Terrorism Command and we would ask anybody who has images or film of the incident to pass those to police by uploading it at www.ukpoliceimageappeal.co.uk."

People fleeing the scene at Borough Market in London

He added: "Our thoughts are with all those involved and those responding to both incidents. Those who are concerned about a loved one can contact the Casualty Bureau on 0800 0961 233.

"We are reviewing and planning to strengthen our policing stance across London over the forthcoming days, and there will be additional police and officers deployed across the Capital.

"I would like to ask the public to remain vigilant and let us know if they see anything suspicious that causes them concern and dial 999 immediately."